With so many homeowners filing to refinance a mortgage these days in Bloomfield Hills and elsewhere in Michigan, you could experience some delays in getting your application approved. Gem Home Loans can help you speed things up on your end by explaining the documents a lender may ask for so you can gather them before starting the refinance process.
Gem Home Loans is a mortgage broker that works one-on-one with clients to build custom financial solutions. Our experienced professionals understand Michigan and the local housing market. The person you contact will be the same person you work with throughout the completion of the home financing process.
If you are looking for personalized attention and customer service that results in a smooth loan process and consults with you on options for your home refinancing, Gem Home Loans is your lender for life.
The documents you need for a refinance are not much different from the document you had to gather when you obtained your original mortgage. All lenders have slightly different requirements, but most of them will ask for documentation in these categories.
1) Proof of income: Lenders typically ask for pay stubs from the last two or three months, but the exact range will depend on the lender. The lender may also want to see tax documents, such as W-2s and 1099s, as well as your current tax returns. If you are self-employed, your profit and loss statements for the current year can help establish proof of your income.
2) Total assets: You will need to document all of your financial assets other than your home. This means documenting things like bank accounts, 401k or other retirement accounts, stocks, bonds, mutual funds, and life insurance policies. If you own other real estate or a business, also provide supporting documents.
3) Outstanding debts: Your lender will be able to see your debts during a credit check, but you will still have to put together documents for things like your current mortgage, home equity loans, credit cards, car loans, student loans, child support, alimony, etc. In some cases, you may have to pay down a portion of debt before your refi can be approved.
4) Insurance: In addition to your financial information, your lender will most likely want to verify that you have insurance coverage. Proof of valid homeowner’s insurance is required when you apply for a refinance, since you will still be making mortgage payments on the home after completing the process.
5) Home Appraisal: Your lender may also request a current appraisal of your home to help determine your loan-to-value ratio, an important calculation in comparing how much your house is worth versus how much you owe on your existing loan.
Knowing what to expect before you refinance the mortgage on your Bloomfield Hills, Michigan home can make the process seem a little less frustrating. Contact Gem Home Loans online or call us at (248)-318-2394. We work hard to find you the best rate, costs, and programs.